3 minute read | February.14.2025
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On February 11, the White House announced Jonathan McKernan’s nomination as Director of the Consumer Financial Protection Bureau (CFPB). McKernan was previously confirmed to the Board of the FDIC by the Senate on a voice vote, so it is unlikely that his current nomination will face major opposition. Until McKernan is confirmed, the CFPB will likely continue to be led by Acting Director Russ Vought unless someone else is put in place on an acting basis.
Below, we explore key questions about McKernan’s background, his views on regulation based on his public statements and what they may mean for the future.
For a deeper dive, read our full report.
McKernan most recently served as a Republican member of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC). During his service on the FDIC Board, McKernan served as co-chair of a Special Committee that oversaw an independent review of allegations of sexual harassment and professional misconduct, and other workplace culture issues, at the FDIC. He also led a push to enhance oversight of large asset managers’ investments in banks.
He previously worked in private practice, served as senior financial policy aide to Senator Bob Corker and held advisory roles at the Treasury Department and the Federal Housing Finance Agency, before becoming Counsel to Ranking Member Pat Toomey on the Senate Banking Committee. He was a board member of the FDIC for about two years, from January 5, 2023, to February 10, 2025.
McKernan has stated that he opposes undue regulatory burden and supports responsible risk-taking. He has advocated against more prescriptive regulation, regularly pushed back on duplicative regulatory notices, criticized what he sees as an unjustified “bias against bank mergers” and expressed a desire to avoid government bailouts of struggling institutions – and chided his fellow regulators for refusing to admit that recent resolutions of large institutions were actually bailouts.
McKernan favors transparency in regulatory processes and has criticized rulemakings that he believes lack clear justification or are unnecessarily complex, including in the context of a brokered deposit rule, bank formation and the FDIC’s final rule implementing the Community Reinvestment Act.
McKernan has expressed support for clearer, activities-based guidance for third-party risk measures to enable new fintechs to compete with established market players. He has also emphasized avoiding regulatory frameworks that create barriers to entry or impede innovation.
McKernan has criticized DEIA programs, suggesting traditional moral principles are sufficient without dedicated DEIA initiatives. He also appears skeptical of specific climate risk guidance, stating that such policy decisions should be left to elected leaders and that regulators should focus on broader emerging risks.
McKernan expressed concern about U.S. regulators’ willingness to adopt the Basel Committee’s recommendations and criticized regulators for failing to both explain their rationale and adopt U.S.-specific approaches.
Some of McKernan’s early challenges will be navigating the agency’s staffing and funding following Acting Director Vought’s layoffs and refusal of the CFPB’s upcoming draw of funds from the Federal Reserve, as well as the administration’s various directives regarding the need to reduce the overall size and budget of the federal government. Also, notable will be who McKernan selects in key deputy roles, particularly those related to supervision and enforcement.
Similar to President Trump’s pick of Kathy Kraninger in his first term, McKernan appears to be an “establishment” pick with substantial government experience. His past statements reveal a view of financial services regulation that broadly aligns with the traditional Republican approach, which is skeptical of the benefits of regulation and favors regulatory frameworks that promote innovation in the industry more broadly.
For a deeper dive, read our full report:
6 minute read | February.12.2025
On February 11, the White House announced the nomination of Jonathan McKernan to serve as Director of the Consumer Financial Protection Bureau (CFPB).
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Want to know more? Ask one of the authors: John Coleman, Jay Williams, Amanda Lawrence and Leslie Meredith.